Recovering Your Debts Through Court

The Two Paths to a County Court Judgment

If a customer or client owes you money and refuses to pay, the courts offer a formal mechanism to compel payment. The first step is obtaining a County Court Judgment (CCJ), a court order confirming that the debtor is legally obligated to pay the amount owed.

There are two ways to go about this, each with its own advantages depending on your circumstances, the complexity of the debt, and your confidence in handling court procedures.

Option 1: Instruct a Solicitor

For many businesses, particularly those dealing with larger or more complex debts, instructing a solicitor is the most practical choice. A solicitor brings expertise at every stage of the process and can handle the legal work on your behalf from start to finish.

What a Solicitor Handles

Issuing proceedings: Preparing and filing the claim form with the court, ensuring all the required information is included and the correct court fees are paid.
Pre-action correspondence: Drafting the Letter Before Action (a formal demand that must be sent before court proceedings can begin) and managing all written communication with the debtor.
Responding to defences: If the debtor disputes the claim, a solicitor can assess the defence, advise on the strength of your position, and prepare a response.
Court hearings: Attending hearings on your behalf, presenting your case, and dealing with any procedural matters that arise.
Legal arguments: Handling contested applications, summary judgment requests, and any legal points that the debtor may raise.

When to Use a Solicitor

Instructing a solicitor is particularly advisable when:

The debt is substantial and the cost of legal representation is proportionate.
The debtor is likely to contest the claim or raise a defence.
You are unfamiliar with court procedures and do not want to risk making procedural errors.
The case involves contractual disputes, disputed invoices, or complex legal questions.

Option 2: Issue Proceedings Yourself

For straightforward debts, where the amount owed is clear, the debtor has no legitimate reason to dispute the claim, and you feel confident managing the paperwork, you can issue court proceedings without a solicitor.

Using Money Claims Online

The HMCTS (Her Majesty’s Courts and Tribunals Service) operates an online portal called Money Claims Online, available at gov.uk/make-court-claim-for-money. This allows individuals and businesses to issue court claims for money owed, entirely online.

How to Get Started

Register as a customer: Create an account on the Money Claims Online portal. You will need basic information about your business and contact details.
Send a Letter Before Action: Before you can issue a claim, you must send the debtor a formal letter (sometimes called a Letter Before Action or Letter Before Claim) giving them a final opportunity to pay. This letter should state the amount owed, the basis for the debt, and a deadline for payment, typically 14 to 30 days. Keep a copy for your records.
Complete the claim form: If the debtor does not pay within the deadline, you can complete the online claim form. You will need to provide details of the debt, the amount claimed (including any interest and court fees), and the debtor’s name and address.
Pay the court fee: There is a court fee to issue a claim, which varies depending on the amount you are claiming. This fee can be added to the claim and recovered from the debtor if you obtain judgment.
Wait for a response: Once the claim is issued, the debtor has a set period (usually 14 days, extendable to 28) to respond. They can either pay, admit the claim, file a defence, or do nothing.

What Happens If the Debtor Does Not Respond?

This is where the statistics work in your favour. Approximately 85% of money claims issued at court go undefended. When the debtor fails to respond within the time allowed, you can apply for a Default Judgment, a court order confirming that the debtor must pay the full amount claimed, including costs and interest.

A default judgment is obtained without a hearing. It is a straightforward administrative process that can be completed online through the same portal.

After Judgment: Enforcement

Obtaining a CCJ is an important milestone, but a judgment alone does not put money in your bank account. If the debtor still refuses to pay after judgment has been entered, you need to take enforcement action.

Several enforcement methods are available, but the most effective option for commercial debts is High Court Enforcement.

Why High Court Enforcement Is the Most Effective Option

High Court Enforcement Officers (HCEOs) carry significantly more authority than standard County Court bailiffs. They have broader powers, including the ability to forcibly enter commercial premises to seize goods. The formal weight of a High Court Writ of Control, delivered by an officer appointed by the Lord Chancellor, sends a clear message to debtors that the matter has escalated to the highest level of civil enforcement.

Requirements for Transfer Up

To use High Court Enforcement, your judgment must meet the following criteria:

Minimum value of £600: The judgment, including any costs awarded by the court, must total at least £600.
Monetary judgment: The order must be for the payment of money. Non-monetary orders (such as an order to deliver goods or perform a service) cannot be enforced through this route.
Transfer from County Court: Since most money claims are issued in the County Court, the judgment needs to be formally transferred up to the High Court before a Writ of Control can be issued.

How Transfer Up Works

Once your CCJ meets the requirements, the judgment is transferred from the County Court to the High Court. This is an administrative process; you do not need to attend court or make legal arguments. RCU handles the entire Transfer Up process on your behalf.

Once the transfer is complete, the High Court issues a Writ of Control. This is the legal instrument that authorises an HCEO to attend the debtor’s premises, seize goods of sufficient value to cover the debt, and sell those goods to satisfy the judgment.

The Role of RCU

RCU acts as the bridge between your judgment and enforcement. We manage the Transfer Up paperwork, liaise with the court, and instruct a qualified HCEO to carry out enforcement once the Writ of Control is issued.

Our service is designed to make the process as straightforward as possible. You submit your judgment through our client Portal, and we handle everything from there, keeping you informed at every stage through real-time tracking.

Practical Tips for a Successful Claim

Keep Your Records

Before issuing proceedings, gather all documentation that supports your claim: invoices, contracts, emails confirming the debt, delivery notes, statements of account, and copies of your Letter Before Action. Good records make the process smoother and strengthen your position if the claim is contested.

Act Promptly

There are time limits for bringing court claims (known as limitation periods). For most contract debts, you have six years from the date the debt became due. While six years sounds like a long time, acting sooner rather than later increases your chances of recovery, as debtors’ financial positions can deteriorate over time.

Consider the Debtor’s Ability to Pay

Before incurring court fees and enforcement costs, it is worth considering whether the debtor is likely to have the means to pay. If the debtor is insolvent or has no assets, even a successful judgment may not result in recovery. A quick check at Companies House can reveal whether a company debtor has filed accounts, is showing signs of financial difficulty, or has entered any insolvency process.

Use the Right Enforcement Method

While High Court Enforcement is the most effective route for most commercial debts over £600, it is not the only option. Other enforcement methods include Attachment of Earnings Orders, Third Party Debt Orders, and Charging Orders. The best approach depends on the debtor’s circumstances. If you are unsure which method suits your situation, seek professional advice.

Next Steps

If you are holding unpaid invoices and considering court action, the process is more accessible than many business owners realise. Whether you choose to instruct a solicitor or issue proceedings yourself through Money Claims Online, the path from unpaid debt to enforceable judgment is well-established and widely used.

Once you have your judgment, RCU is here to handle the Transfer Up and enforcement process, giving you the best possible chance of recovering what you are owed.